Health and Mass Media Minister Nalinda Jayatissa said on Wednesday he would review concerns over tax deductions for Members of Parliament, after questions were raised about why MPs appear to pay a lower Advance Personal Income Tax (APIT) than private or public sector employees earning similar salaries.
The issue surfaced during a Cabinet media briefing after MP Ramanathan Archchuna circulated details of MPs’ salaries earlier in the month, prompting questions about the disparity between the APIT component on MP pay and the deductions made from other earners on comparable incomes.
Jayatissa said tax calculations depended on basic salary and allowances, with some allowance components not subject to APIT. He said he would examine which parts of MPs’ income were exempt and report back.
“No one should evade taxes. Everyone who is liable must be brought into the tax net. That is the government’s policy,” Jayatissa said, adding that the government supported expanding and formalising the tax base.
Asked whether action would be taken through Parliament, the minister said MPs must pay tax on their income and any discrepancies would be reviewed. He noted the government had already abolished MPs’ pensions and removed privileges accorded to former presidents, and said it stood by fair taxation for all.
The review lands while the government is under pressure to widen the tax base under its International Monetary Fund programme and as public-sector scrutiny intensifies following a $2.5 million cyber fraud at the Treasury.
